Banks Fear Democrat Bids
To Aid Mortgage Borrowers

By

Damian Paletta

Updated Nov. 5, 2007 12:01 a.m. ET

WASHINGTON -- Some major U.S. banks are concerned an effort by Democrats to help mortgage borrowers avoid foreclosure could lead lawmakers to scale back tough bankruptcy overhauls adopted two years ago, when Republicans were in power.

To help address defaults and foreclosures on subprime mortgages, lawmakers are pushing a bill that would allow bankruptcy judges to rework the terms and conditions of loans. Consumer groups have gotten...